Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO EXISTING CUSTOMERS

CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE

No. SIC Year Notes
1 7384 2000 Ofoto and Shutterfly offer snapshot size prints free when you sign up. Both charge 49 cents for snapshots, 99 cents for 5×7 prints and $2.99 for 8×10. In contrast, Kodak's online service, PhotoNetOnline, offers features roughly comparable but for higher prices; $8.95 for an 8 x 10, $1 to download high resolution versons of images where Ofoto and Shutterfly offer this service for free.

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